Chp- 7- Process Management

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 1

    Chapter 7Process Management

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 2

    Wisdom from Texas Instruments

    Unless you change the process, why wouldyou expect the results to change

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 3

    Scope of Process Management

    Process Management : planning andadministering the activities design ,control , and improvement necessary toachieve a high level of performance

    Four types of key processes Design processes Production/delivery processes Support processes Supplier processes

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 4

    AT&T ProcessManagement Principles

    Focus on end-to-end process Mindset of prevention and continuous

    improvement Everyone manages a process at some level

    and is a customer and a supplier

    Customer needs drive the process Corrective action focuses on root cause Process simplification reduces errors

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 5

    Control vs. Improvement

    Controlledprocess

    Improvement

    Time

    New zoneof control

    Out-of-control

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 6

    Leading Practices (1 of 2)

    Translate customer requirements and internalcapabilities into product and service designrequirements early in the process

    Ensure that quality is built into products and servicesand use appropriate tools during development

    Manage product development process to enhance

    communication, reduce time, and ensure quality Define, document, and manage important

    production/delivery and support processes

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 9

    Product Development Process

    Ideageneration

    Conceptdevelopment

    Product &process design

    Full-scaleproduction

    Productintroduction

    Marketevaluation

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 10

    Quality Engineering

    System Design Functional performance

    Parameter Design Nominal dimensions

    Tolerance Design Tolerances

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 11

    Loss Functions

    loss lossno loss

    nominaltolerance

    loss loss

    TraditionalView

    Taguchis View

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 12

    Taguchi Loss Function Calculations

    L(x) = k(x - T) 2

    Example : Specification = .500 .020 Failure outside of the tolerance range costs $50to repair. Thus, 50 = k(.020) 2. Solving for k

    yields k = 125,000. The loss function is:

    L(x) = 125,000(x - .500)2

    Expected loss = k( 2 + D 2 ) where D is the deviation from the target.

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 13

    Taguchi Loss Function CalculationsThe equation used to describe the loss function of one unit of product: L = k(y-m)^2\qquadWhere:

    L = Loss in Dollars y = Output Valuem = Target Value of Outputk = Proportionality ConstantThe proportionality constant (k) for nominal-the-best characteristics canbe defined as:

    k = \frac {A_0} {\Delta_0^2}Where:

    A0 = Consumer Loss (in Dollars) 0 = Maximum Deviation from Target Allowed by Consumer

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 14

    Design Objectives

    Cost, Manufacturability, Quality,Public Concerns

    Tools and Approaches Design for Manufacturability

    Design for Environment

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 15

    Streamlining Product Development

    Competitive need for rapid productdevelopment

    Concurrent engineering - a process inwhich all major functions involved with

    bringing a product to market arecontinuously involved with the product

    development from conception throughsales Design reviews

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 16

    House of Quality

    Technical requirements

    Voice ofthe

    customer

    Relationshipmatrix

    Technical requirementpriorities

    Customerrequirement

    priorities

    Competitiveevaluation

    Interrelationships

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 17

    Quality Function Deployment

    technicalrequirements

    component

    characteristicsprocess

    operations quality plan

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 18

    Motorolas Approachto Process Design

    1. Identify the product or service2. Identify the customer

    3. Identify the supplier4. Identify the process5. Mistake-proof the process6. Develop measurements and control, and

    improvement goals.

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 19

    Evaluating a Process Are steps arranged in logical sequence? Do all steps add value? Can some be eliminated

    or added? Can some be combined? Should some be reordered?

    Are capacities in balance? What skills, equipment, and tools are required ateach step?

    At which points might errors occur and how can

    they be corrected? At which points should quality be measured? What procedures should employees follow where

    customer interaction occurs?

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 21

    Basic Components of Services

    Physical facilities, processes, and procedures

    Employee behavior Employee professional

    judgment

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 22

    Key Service Dimensions

    Customer contact and interaction

    Labor intensity

    Customization

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 23

    Control

    The continuing process of evaluating process performance and taking corrective action whennecessary

    Components of control systems Standard or goal Means of measuring accomplishment Comparison of results with the standard as a basis

    for corrective action

    A well-controlled system is predictable

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 24

    After Action Review

    1. What was supposed to happen?2. What actually happened?3. Why was there a difference?4. What can we learn?

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 25

    Supplier and Partnering Processes

    Recognize the strategic importance ofsuppliers

    Develop win-win relationships through partnerships

    Establish trust through openness andhonesty

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 26

    Supplier Certification Systems

    Certified supplier one that, afterextensive investigation, is found tosupply material of such quality thatroutine testing on each lot received isunnecessary

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 28

    Process Improvement

    Productivity improvement Work simplification

    Planned methods change

    Kaizen Stretch goals Benchmarking Reengineering

    TraditionalIndustrial

    Engineering

    New approaches from

    the total qualitymovement

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 29

    Kaizen

    Gradual and orderly continuousimprovement

    Minimal financial investment Involvement of all employees

    Exploit the knowledge and experienceof workers

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    THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 31

    Breakthrough Improvement

    Discontinuous change resulting from innovativeand creative thinking

    Benchmarking the search of industry best practices that lead to superior performance Competitive benchmarking Process benchmarking

    Strategic benchmarking

    Reengineering radical redesign of processes

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    THE MANAGEMENT AND CONTROL OF QUALITY 5e 2002 South Western/Thomson Learning TM 32

    Process Managementin the Baldrige Award Criteria

    The Process Management Category examines the keyaspects of an organizations process management,including customer-focused design, product and service

    delivery, key business, and support processes. ThisCategory encompasses all key processes and all workunits.

    6.1 Product and Service Processes

    a. Design Processes b. Production/Delivery Processes

    6.2 Business Processes

    6.3 Support Processes